Aro Muric will join Nottingham Forest on a season’s loan.
But Manchester City still have extremely high hopes that the 20-year-old Kosovo international will return to fight it out with Ederson in their first team squad next summer.
Muric spent the season as under-study to the Brazil international, and performed well when given his chance in the first team in five Carabao Cup ties – including a heroic display in a penalty shoot-out win at Leicester.
But with Claudio Bravo expected back following a nine-month absence with an achilles tendon rupture, City did not want to relegate Muric back to number three.
Instead, they offered 6ft6in Muric on loan, and with Preston North End also keen, Forest won the race.
Bravo is expected to leave next summer, when he will be 37 and at the end of his contract, freeing up space for Muric in the squad – providing his loan goes well.
Muric should have gone on loan at NAC Breda last season, but the injury to Bravo forced a hasty reversal of that decision after he had played just one game in the Eredivisie.
City are contemplating bringing in 35-year-old Eibar keeper Asier Riesgo as an experienced third choice, as Pep Guardiola was uncomfortable with the lack of an experienced deputy last season.
Muric is a Montenegro under-21 keeper but he won his first senior cap playing for the newly-recognised Kosovo international team, and has made his debut for them in a UEFA Nations League games against Azerbaijan.
